| The ministry has asked the state government to give the refinery fiscal incentives in the form of lower local taxes so that it can be implemented at the earliest. |
| When completed, the project, which has obtained all necessary clearances, is expected to have a capacity of 6 million tonnes annually. |
| The ministry has apprised the state government of the benefits accruing from the refinery in terms of its employment potential and its expected boost to the state's economy. |
| Though the ministry had taken up the matter with the previous state government headed by Digvijay Singh as well, its response to the proposal had been lukewarm. Now that a BJP government has been installed in the state, it is hoped that things will move faster. |
| The government had recently increased the equity of Bharat Petroleum Corporation Ltd (BPCL) in the project from 26 per cent to 50 per cent to help improve the share value of the public sector oil marketing and refining company. |
| Since the Bina project has a 16 per cent internal rate of return (IRR), its implementation is expected to increase the share value of BPCL in the long run. |
| The refinery project was initially conceived to be implemented as a joint venture between BPCL and Oman Oil Company (OOC). |
| Both BPCL and OOC were proposed to hold 26 per cent equity each in the project. However, later, OOC decided to limit its participation in the project to a mere 3-4 per cent. |
| With the equity restructuring of the project, BPCL will hold 50 per cent equity, OOC 3-4 per cent, and the balance will be offered to public, financial institutions and banks. |
| As BPCL does not have any refinery in central and northern India, it has pinned all its hopes on the Bina refinery to maintain its supplies to these areas. |
| Though it was reluctant to put up the refinery on its own, it has been forced to do so after OOC refused to participate in any significant manner. |
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